Aid agency to rejoin ministry

Foreign Minister Murray McCully will announce today that NZAID is to be reintegrated into the Foreign Affairs Ministry.

In a speech to the New Zealand Institute of International Affairs at Wellington's Victoria University, Mr McCully will outline the future direction of the aid and development agency.

The Government has been reviewing the $480 million aid programme.

Mr McCully previously said the budget would not be reduced but payments had become "a handout rather than a hand up" and NZAID'S mandate for poverty elimination was too broad.

"You could ride around in a helicopter pushing hundred dollar notes out the door and call that poverty elimination," he said.

He signalled then that the review could include reintegrating NZAID, which administers the programmes, into Foreign Affairs.

NZAID was separated from the ministry by the previous government in 2002.

Foreign Affairs is also said to be headed for a shake-up, with a report that non-diplomat John Allen is to head it.

Mr Allen, chief executive of New Zealand Post, is reported to be the replacement for Simon Murdoch. The Trans Tasman political newsletter reported yesterday he was given the job in a bid to create a "culture of change".

- NZPA